Three Key Themes for 2019
Happy New Year! As traders will take a break from trading today due to the markets being closed, many will start to prepare their portfolios for the 2019 trading year which will kick off tomorrow. The following four themes are very likely to have an impact on price action across asset classes and every forex traders need to remain informed about them. One key area of focus will be the US-China trade war. Ripple effects have been felt around the global economy already and are likely to continue until it will be resolved. There is a chance that both sides will agree to reverse the announced tariffs this year, but traders should not expect a quick resolution.
Here are three forex trades which will help you start 2019 on a profitable note ⬇️⬇️⬇️
Forex Profit Set-Up 1️⃣ Buy #AUDJPY - D1 Time-Frame
Hopes are on the rise that the US and China will find a solution to the trade war started by the US. The Australian Dollar, a Chinese Yuan Proxy, has come under heavy selling pressure over the past five weeks which pushed the AUDJPY into its horizontal support area. This currency pair is now ripe for a short-covering rally as forex trader may start 2019 locking in solid profits. A breakout is anticipated to take the AUDJPY back into its next horizontal resistance level. Forex traders are recommended to spread their buy orders inside its current support area.
Forex Profit Set-Up 2️⃣ Sell #USDCHF - D1 Time-Frame
With the US government partial shutdown adding to the overall uncertainty about the US in 2019, the breakdown in the USDCHF is expected to extend until price action will test its horizontal support area. Following the breakdown below its horizontal resistance area, this currency pair is facing downside pressure from its primary and secondary descending resistance level. This is expected to result in a breakdown below its primary ascending support level and forex trades are advised to sell the rallies in the USDCHF, up into its secondary descending resistance level.
Forex Profit Set-Up 3️⃣Sell #EURGBP - D1 Time-Frame
As the Brexit deadline approaches, volatility in the British Pound is anticipated to increase. Adding the uncertainty in the Eurozone, especially with the EU election in May, and the EURGBP is on track to create plenty of trading opportunities. Price action already completed a breakdown below its horizontal resistance area as well as below its primary ascending support level. A second breakdown below its secondary support level is expected to take the EURGBP down into its next horizontal support level. Selling the rallies is favored.